Morgan City-based boat builder Conrad Industries reported its 2015 earnings fell to $10.6 million, or $1.86 per share, less than half the $22.8 million, or $3.84 per share, reported for 2014.
The 2015 results reflect the downturn in the oil patch, and the challenging environment has hit the company’s vessel construction and repair and conversion segments, President and CEO Johnny Conrad said.
There has been less demand for new inland tank barges primarily used to move petroleum products produced from shale plays, Conrad said in the annual report. The company believes that customers are continuing to delay orders for larger projects.
The repair market also remains soft because of oil prices’ downturn.
Conrad said he expects the same factors will hurt the company’s financial performance in 2016, but he is optimistic about the firm’s long-term prospects.
Conrad Industries has weathered these types of challenges and will continue to do so, Conrad said.
For the fourth quarter, the company posted net income of $3.4 million, or 63 cents per share, compared to $5.2 million, or 88 cents per share, a year earlier.
Conrad’s backlog of work was $211.8 million at Dec. 31, compared to $180.2 million at the end of 2014.
The company designs, builds and overhauls tugboats, ferries, liftboats, barges, offshore supply vessels and other steel and aluminum products at five shipyards in Louisiana and Texas.